Introduction
Venmo the app is a revolutionary technology which has saved people from the inconveniences of the local commercial banks including other money transfer service providers. Its exponential growth is greatly driven by millennia. To achieve its success, the company has improvised various strategic resources (“Venmo”). To add to its success, Venmo has been popular due to its strategic management and its ability to meet the needs of its users (Gallaugher, 99). Venmo utilizes social media connections as its strategic resource to advertise itself and for marketing. Social media such as Facebook, Whatsapp and Instagram have helped Venmo to market their app and thus ensuring that their app reaches a wider market (“Venmo”). Moreover, Venmo has a social payment display feed branded as “Bill Your Friend” allowing indirect payment reminders thus attracting and encouraging various users to transact for payment collection. Furthermore, they do not charge individuals sending or receiving money (“Venmo”). This is the most effective selling point to overcome competitors who charge to send and receive money.
Venmo’s financial resource involves charging business fees for transactions made. Venmo allows its users to make payments on other apps by charging a 2.9% fee (“Venmo”). Its other source of income is via a 3% fee that is incurred for credit card payments. Moreover, Venmo’s source of revenue is through adverts that attract more users. They have unique and precise adverts targeting all walks of people and of different age groups. The intent of these adverts is to persuade the audience to use their app and that their app is an easier form of payment (Chapter 2, Slide, 10). This strategy helps Venmo to communicate and sell their brand convincing people that their brand has a simplified process which many people tend to find tedious using an app (“Venmo”). Their main persuasive strategy is demonstration. Their adverts focus on demonstrating the diverse time that a user would utilize the app. Moreover, they use slices of life and testimonial as to their persuasive strategy.
Venmo faces steep competition from various money transfer providers. Google wallet for instance is the main competitor for Venmo. Both Venmo and Google Wallet offer their services for free and allows the linkage of debit or credits and bank accounts to their accounts. Unlike Venmo which is only available in the United States, Google Wallet is in both United States and the United Kingdom (“Venmo”). Another competitor is Apple or Android Pay, a payment system for purchasing in stores using a fingertip reader on phones. However, it does not provide friend-to-friend transfers. Facebook and PayPal as well are big competitors to Venmo which calls for Venmo to consider improving on its strategic resources in order to gain a competitive advantage.
Unlike some of its competitors, Venom is fast, convenient, painless and reliable as other services incorporate withdrawal charges together with longer timings in their transactions (Chapter 3, Slide 13). It does not have multiple steps for transferring money. It has simple and flexible money transfers. Venmo is lenient and convenient to its users as it allows its users to make payments even though they have insufficient balance since the deficit amount is obtained out of the connected primary funding source which is a credit or debit card or even a bank account (Gallaugher, 121). In terms of use, Venmo mobile apps are used to sign up and to use. Payment is can be done using a debit or credit card source. Moreover, payments can be made to Venmo non-users, although the recipient has to sign up in order to accept money (“Venmo”). Venmo has unique features like “Nearby Payment,” which facilitates transactions across people in diverse geographical proximity as well as a trust feature for recurring transactions such as monthly rent payments hence increasing popularity. When it comes to safety, Venmo is very secure.
Generally, the online form of payment is gradually getting more competitive which will eventually enable better features and more convenience for its users (Gallaugher, 122). Contrary, it is disadvantageous to use social connections since it is hard for users to shift from one platform to another suppose all of their friends or business partners are not on the platform. Whereas on the other hand, the use of browsers and apps provides convenience allowing quicker switch over (“Venmo”). Eventually, end users will have numerous choices and it will be up to the businesses to innovate their platforms.
Conclusion
Essentially, in order to gain a competitive advantage, it is recommendable that Venmo extends its services beyond the United States borders to other parts of the world. This will enable it to gain more market as it will attract more users and gain a good reputation worldwide. To overcome the competition, Venmo should consider replacing its traditional and inconvenient means of e-payments with no charges at all. Moreover, Venmo should invest in its human capital to ensure the proper delivery of services and ensure the provision of timely customer care services. With current internet threats such as online fraud, Venmo should implement proper and secure systems that will ensure safe transactions on their platform. This will help in building trust among its users and potential users. This will help the company gain a good reputation and gain a competitive against its competitors. Lastly, the company should extend the use of social media connections as it helps them find more users.